ALLSTATE CORP

Allstate Corporation is one of the largest publicly held personal lines insurers in the United States, operating primarily through Allstate Insurance Company and other subsidiaries. The company's strategy is to increase market share in personal property-liability and broaden protection offerings. Allstate is the 3rd largest personal property and casualty insurer in the United States based on 2024 statutory direct premiums written according to A.M. Best. The company operates in a highly competitive personal lines insurance market, with principal competitors including State Farm, GEICO, Progressive, and others as reflected in market share data for private passenger auto and homeowners insurance.

Allstate's competitive positioning is supported by the widely known Allstate brand and the 'You're In Good Hands With Allstate' slogan. The company is the 3rd largest personal property and casualty insurer in the United States based on 2024 statutory direct premiums written according to A.M. Best. The personal lines insurance markets, including private passenger auto and homeowners insurance, are highly competitive, and the filing provides market share comparisons against principal U.S. competitors using statutory direct written premium data for the year ended December 31, 2024, according to A.M. Best.

Allstate generates revenue primarily through insurance premiums and contract charges, with the Allstate Protection segment accounting for 93.9% of 2025 consolidated insurance premiums and contract charges and 18.1% of December 31, 2025 policies in force. The company serves customers through three distribution channels: exclusive agency, independent agency, and direct channels, primarily under the Allstate and National General brands. The Protection Services segment accounted for 5.0% of 2025 consolidated total revenue and 81.6% of December 31, 2025 policies in force, offering consumer product protection plans, roadside assistance, automotive protection, identity protection, and telematics services.

The Allstate Protection segment includes private passenger auto, homeowners, and other personal lines products. In 2025, auto insurance premiums written were $38.649 billion ¹, homeowners premiums written were $16.565 billion ², other personal lines premiums written were $3.265 billion ³, commercial lines premiums written were $402 million ⁴, and other business lines premiums written were $665 million ⁵. The segment had 38.275 million total policies in force as of December 31, 2025 ⁶, including 25.504 million auto policies ⁷ and 7.697 million homeowners policies ⁸. Underwriting income for the Allstate Protection segment was $8.694 billion in 2025 ⁹ compared to $3.153 billion in 2024 ¹⁰.

The Protection Services segment includes Protection Plans, Roadside, Dealer Services, Identity Protection, and Arity. In 2025, Protection Services premiums written were $3.006 billion ¹¹ and adjusted net income was $218 million ¹². The segment had 172.183 million policies in force as of December 31, 2025 ¹³, with Protection Plans representing 164.650 million of those policies ¹⁴. The Run-off Property-Liability segment includes results from property and casualty insurance coverage primarily relating to policies written from the 1960s through the mid-1980s, with net reserves of $1.432 billion as of December 31, 2025 ¹⁵.

During 2025, Allstate completed the sale of its employer voluntary benefits business on April 1, 2025, recording a gain on sale of $888 million ¹⁶ or $641 million after-tax ¹⁷. The company also completed the sale of its group health business on July 1, 2025, recording a gain on sale of $715 million ¹⁸ or $499 million after-tax ¹⁹. On February 26, 2025, the Board of Directors authorized a common share repurchase program for $1.50 billion ²⁰ which must be completed by September 30, 2026 ²¹. During the fourth quarter of 2025, Allstate repurchased 2,128,193 shares ²² as part of publicly announced plans or programs at an average price of $204.27 per share ²³.

Consolidated net income applicable to common shareholders was $10.17 billion in 2025 ²⁴ compared to $4.55 billion in 2024 ²⁵. Total revenue increased 5.6% to $67.69 billion in 2025 ²⁶ compared to 2024. Net investment income increased $357 million to $3.45 billion in 2025 ²⁷ compared to 2024. Investments totaled $83.24 billion as of December 31, 2025 ²⁸, increasing from $72.61 billion as of December 31, 2024 ²⁹. Allstate shareholders' equity was $30.61 billion as of December 31, 2025 ³⁰ and $21.44 billion as of December 31, 2024 ³¹. Book value per diluted common share was $108.45 as of December 31, 2025 ³², an increase of 49.9% from $72.35 as of December 31, 2024 ³³. Return on average Allstate common shareholders' equity for the twelve months ended December 31, 2025 was 42.3% ³⁴, an increase of 16.5 points from 25.8% for the twelve months ended December 31, 2024 ³⁵.

Allstate Protection's strategy is to increase personal lines market share through Transformative Growth, which involves creating a business model, capabilities, and culture that continually transform to better serve customers. This is achieved through a multi-channel distribution strategy leveraging exclusive agency, independent agency, and direct channels. The Affordable, Simple and Connected auto and homeowners insurance products are available in 43 and 31 states, respectively, with rollout completion targeted for 2026 ³⁶. Custom360 middle market standard and preferred auto and homeowners insurance products were rolled out to 36 states at the end of 2025 ³⁷. The company is expanding National General by expanding product offerings and independent agency relationships and leveraging Allstate pricing and product capabilities.

Protection Services' strategy is to better serve and connect to customers by innovating new products and services, expanding distribution, and providing affordable, simple, and connected protection solutions. Protection Plans aims to expand distribution and product breadth of consumer protection plans through new and existing retailers and mobile operators across North America, Europe, and Asia. Dealer Services seeks to expand distribution of Allstate branded protection and insurance products through auto dealerships, business partnerships, and direct to consumer. Identity Protection aims to create a leading position in the identity protection and restoration market, offering full-service identity protection and expanding partnership and direct to consumer distribution channels. Arity provides industry-leading telematics and mobility insights to insurance companies, retailers, mapping and traffic companies, public sector, and consumer mobile apps.

The expense ratio for Allstate Protection decreased 0.3 points in 2025 compared to 2024, primarily due to higher earned premium growth relative to costs, partially offset by an increase in advertising costs. The total expense ratio was 21.4% in 2025 ³⁸ compared to 21.7% in 2024 ³⁹. Advertising expense was $2.100 billion in 2025 ⁴⁰ compared to $1.863 billion in 2024 ⁴¹. The company is seeking to be a low cost provider through cost reductions and new products, identifying savings opportunities for customers through proactive protection reviews and increasing pricing sophistication.

Allstate is deploying an advanced technology ecosystem to deliver affordable, simple, and connected experiences and products at a lower cost, using generative and agentic artificial intelligence to improve customer value. The company is driving organizational transformation to improve effectiveness and efficiency by empowering talent with decision clarity, agile business processes, measurement science, and advanced technology. As of December 31, 2025, Allstate had approximately 53,000 full-time employees ⁴² and 300 part-time employees ⁴³.

The total cost of Allstate's property catastrophe reinsurance programs, excluding reinstatement premiums, during 2025 was $1.23 billion ⁴⁴ compared to $1.11 billion during 2024 ⁴⁵. On February 26, 2025, the Board of Directors authorized a common share repurchase program for $1.50 billion ⁴⁶ which must be completed by September 30, 2026 ⁴⁷. The company's capital allocation strategy includes share repurchases and dividends, with the aggregate market value of common stock held by non-affiliates as of June 30, 2025 being approximately $52.83 billion ⁴⁸.

Macroeconomic factors including tariffs, supply chain disruptions, and labor shortages have and may continue to impact operations. Beginning on April 2, 2025, the U.S. government announced additional tariffs on goods imported to the U.S., which may impact claims costs in Allstate Protection and Dealer Services, building material costs driving increases in homeowners claim costs, and other areas. The evolving and uncertain global trade environment makes it difficult to predict the full effect on the business. The company is also subject to regulatory limitations on rate increases, with 21 locations for auto and 20 locations for home requiring prior approval of rates before use.

Catastrophe losses and severe weather events continue to be a significant factor, with the modeled 1-in-100 probable maximum loss for hurricane, earthquake, and wildfire perils being approximately $3.1 billion as of December 31, 2025 ⁴⁹, net of reinsurance. The company has taken actions to manage catastrophe exposure, including limiting or not offering new homeowners business in certain coastal geographies, reducing exposure in California and Florida, and purchasing reinsurance. In Florida, Allstate is not writing new homeowners business and is substantially complete with the non-renewal of certain policies. The company stopped writing new homeowners and condominium business in California in 2022 and new homeowners business in Florida in 2023.

Property and casualty actual claim costs may exceed current reserves established for claims due to changes in the inflationary, regulatory, and litigation environment, with reserve reestimates having a material impact on results. Catastrophes and severe weather events may subject Allstate to significant losses, with the modeled 1-in-100 probable maximum loss for hurricane, earthquake, and wildfire perils being approximately $3.1 billion ⁵⁰ net of reinsurance as of December 31, 2025. The company faces risk that regulatory approval of rates, especially during inflationary periods, may restrict rate changes required to achieve targeted profitability, with 21 locations for auto and 20 locations for home requiring prior approval of rates. A downgrade in financial strength ratings could have an adverse effect on sales, competitiveness, customer retention, and access to capital. The investment portfolio is subject to market risk, including interest rate risk and equity price risk, with investments totaling $83.24 billion ⁵¹ as of December 31, 2025, and declines in credit quality may cause realized and unrealized losses.

Management's message emphasizes the company's strategy to increase personal property-liability market share and broaden protection offerings by leveraging the Allstate brand, customer base, and capabilities. The key strategic priorities for the period ahead include Transformative Growth, which focuses on improving customer value by providing low cost affordable, simple, and connected protection solutions, expanding customer access to Allstate and National General products and services through a wide variety of distribution channels, increasing sophistication and investment in customer acquisition, deploying new technology ecosystems that are more flexible and enable a digital customer experience, and driving organizational transformation. Management also emphasizes the Protection Services strategy to better serve and connect to customers by innovating new products and services, expanding distribution, and providing affordable, simple, and connected protection solutions. The company's Shared Purpose is articulated as empowering customers with protection to help them achieve their hopes and dreams, providing affordable, simple and connected protection solutions, and creating economic value for shareholders, opportunity for the team, and improving communities.